The Following Data Relate to Direct Labor Costs for the Current

question 27

Multiple Choice

The following data relate to direct labor costs for the current period:Standard costs7,500 hours at $11.70Actual costs6,000 hours at $12.00​What is the direct labor time variance?

• A) $18,000 favorable
• B) $18,000 unfavorable
• C) $17,550 unfavorable
• D) $17,550 favorable

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Definitions:

Manufacturer

A company or individual that creates goods using raw materials and components through various processes, labor, and machinery.

Work in Process

Inventory that includes materials that are in the process of being manufactured but are not yet completed products.

Raw Materials

Basic materials used in the production process, not yet converted into finished goods.

Work in Process Inventory

Inventory that includes all the materials, labor, and overhead costs for products that are in the production process but not yet complete.